An energy boss has called for a price cap on North Sea oil and gas producers, which he said could save British households £1,000 a month as households buckle under the strain of rising energy bills.
MailOnline spoke to Dale Vince (60), founder and owner of Ecotricity, a green energy company, about the importance of the Forest Green Rovers vegan football team. He said that it was the best way to combat spiraling energy costs.
Vince stated that the “exceptional” cost of living would require a government response similar to the Covid-19 pandemic, which helped families get through winter. Hundreds of thousands are now facing poverty.
The UK’s gas prices have quadrupled in June, putting bills at an all-time high for Brits who struggle to keep up with rising prices.
Ofgem announced yesterday the energy price cap for an average household would increase to £3,549 a year from October.
Vince stated that in order to solve the crisis, there should be a limit on oil and gas producer profits from the UK North Sea. It is similar to what happens with energy retailers whose profits are captialized at two percent.
Dale Vince (60), founder of Ecotricity, a green energy company, said that government must take immediate action to address energy bills and that price caps are the best way for families to be helped.
His comments come as Harbour Energy, the biggest North Sea oil and gas producer, saw its profits increase by twentyfold this year from £102 million to an astonishing £1.3 billion as energy prices soar.
MailOnline was informed by Mr Vince that there is a price limit in place [energy] retail sales to homes, we don’t have one on wholesale. We’ve done half a job, which causes lopsided problems.
‘It’s simple in retail: energy companies are allowed to make two per cent profit, set by Ofgem. Wholesale can make up two percent more than that.
‘Currently we let those guys sell it to us at global commodity prices set by the international market – that doesn’t make any sense to me.
“The government attempted a last-ditch, half-hearted tax on profit windfalls that would make little difference.
‘We pay £1,800 for gas – that’s half of our energy bills. In broad terms, take that gas half away from bills and you could be saving £1,000 per household.
Forest Green Rovers owners claimed that the plan would reduce energy bills and not require public spending.
Harbour Energy, the biggest North Sea oil and gas producer, saw its profits increase by twentyfold this year from £102 million to an astonishing £1.3 billion as energy prices soar
“Put the issue in, you will solve it.”
‘It’s not just homes being affected, it’s small businesses – they can’t afford to pay their bills
“The government should see it as the pandemic — an exceptional event.”
Mr Vince estimated the amount saved by British households if the price cap was brought in would be £28 billion in total.
He said that gas is the most expensive energy source and a profit cap on the North Sea would be a significant impact.
He said: ‘In terms of solving the problem without throwing public money at it, it’s the biggest single thing bar none.
‘You don’t need a tax for it and it could take £30 billion off energy bills.’
‘A lot of people can’t pay for it, so the solutions are either public money or changing the system.
40% of our electricity is generated from gas. [gas prices]You can set the price to buy nuclear, renewables and coal – or any other type of energy you want.
“That would reduce half of the electricity and gas bill.
The oil and gas industry has been strongly against increased taxes. However, the government has decided to introduce windfall taxes in May to collect money from the industry to support the boom.
Liz Truss is likely to be Britain’s next Prime Minster. She has stated repeatedly that she would like to reduce taxes and’maximise’ oil and gas production. However, output in North Sea was at its peak 20 years ago.
Partly, the Russian invasion in Ukraine caused a spike in energy prices and boosted profits at energy companies.
Households, meanwhile, face a potentially disastrous winter as average gas and electricity bills hit £3,549.
There are concerns they could rise to over £5,000 next year
Boris Johnson yesterday stated that his successor would ‘plainly’ have to aid families in paying bills for this winter.
He stated that cash handouts would be:
He added: ‘What I don’t think what we should be doing is capping things for absolutely everybody, the richest households in the country.
“This will last for a few more months before it ends, then it will end over the winter.
And it will be tough – and I’d be very clear about that – but in the end, we are also putting in the measures we need to ensure that we have the energy independence to get through this.’